Institutes include. Institute: concept, features, types, regulation

Labor as a factor of production

Parameter name	Meaning
Article subject:	Labor as a factor of production
Rubric (thematic category)	Production

There are factors without which the concept of production would not make sense, and these are factors that affect the volume of production. Factors of production efficiency are quite diverse, since there are a great many resources for it. There are three main groups of factors: land, labor and capital. Water, forests, fields, minerals, etc., that is, something given by nature or created by man (for example, drained swamps) - ϶ᴛᴏ land.

Labor as a factor of production is very important and relevant, since it means the participation of a person in the production process, the use of his own energy and potential. The main elements of labor include objects of labor, means and expedient human activity. The main results of labor: economic benefits, human development (physiological and mental), human living conditions, accumulation of knowledge and experience.

Labor - ϶ᴛᴏ is not just an engine of progress, labor is the basis of human existence and life, because under its influence the brain, speech develops, experience is accumulated, skills are improved.

Labor as a factor of production has content and character.
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According to the content, low-skilled, medium-skilled and highly skilled labor is distinguished.

Labor has both quantitative and qualitative characteristics. Qualitative characteristics - this is the level of qualification of employees, quantitative - ϶ᴛᴏ costs (number of employees, intensity of labor activity, working time). The more time it takes to educate and train a specialist, the more qualified he is.

In order to determine the nature of labor, it is necessary to conduct a thorough analysis of the combination of labor force and means of production, to clarify who and in what quantities appropriates the results of labor. With this in mind, three basic social types of labor are distinguished: free, hired and forced. Forced labor - ϶ᴛᴏ forced labor (slave labor). Today, the first two types of labor activity meet.

Free labor is voluntary.
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This is labor activity for oneself, when the owner and worker act in one person. A typical example of such activity: entrepreneur, farmer, etc. If the labor activity is hired, it means that the employer and the employee are different people, their relationship is formalized by an employment contract, sometimes an agreement or contract, and based on the results of labor, the employee receives a certain monetary reward.

For a long time there was a controversial question whether labor acts as a factor of production or is it a labor force. The physical, mental and intellectual abilities of a person are the labor force. If the employer is interested in the ability of a person to work, then the factor of production is the labor force. If the duration of working time is important for him, then this factor is labor. In order to work qualitatively, a person must have a certain health, abilities and skills, it follows that the labor force exists before the start of the labor process.

Labor productivity - ϶ᴛᴏ the ratio of the result of labor (the number of products produced) in a certain period of time. Labor productivity, in turn, depends on a number of factors that can affect it.

33. Capital (from lat. capitalis- main, main property, main amount) - a set of assets used to make a profit in the future. The direction of assets in the sphere of production or provision of services for the purpose of making a profit is also called capital investments or investments.

There are physical (material capital) and human capital. physical capital- non-expendable property (buildings, machines, equipment) used by the company in its activities. Distinguish between fixed and circulating physical capital. Main capital- real durable assets, the value of which is transferred to the product in installments over a number of periods of production (buildings, structures, machinery, equipment, vehicles, etc.). Working capital- real assets, the value of which is fully transferred to the cost of a new product and returned in cash to the entrepreneur when the product is sold in each cycle (raw materials, fuel, materials, semi-finished products). Human capital- the physical and mental abilities of a person obtained through education or practical experience; a measure of the ability to generate income embodied in a person. In other words, human capital is a special kind of labor resources. For this reason, capital in the market of factors of production means material factors, capital goods. Another aspect of capital is related to its monetary form. Money capital is the common denominator to which the value of capital in the form of any asset is reduced. In monetary terms, the value of both physical and human capital must be calculated. Capital embodied in the means of production is called real capital. money capital, or capital in cash, is an investment resource. By itself, money capital is not an economic resource; it cannot be used directly in production, but it can be used to purchase factors of production.

35. Entrepreneurship - a way of doing business on an independent basis.

The basic functions of modern entrepreneurship include:

‣‣‣ Financial and accounting management. Financial management involves the mobilization of capital, the accumulation of income from entrepreneurial activities, the management of the use of capital and income. The main task of entrepreneurship is to ensure the maximum return of entrepreneurial activity with minimal risk.

‣‣‣ personnel function. Personnel management includes the selection of candidates and hiring, personnel management of the organization. Personnel management - a system of management activities in the field of social and labor relations of the organization's staff.

The competitive advantages of a kick of all strata, as well as a separate enterprise, today are largely determined by human resources. According to the calculations of the World Bike, in the composition of the national wealth of the United States, the main production assets (buildings and structures, machinery and equipment) make up only 19 51, natural resources - 5% human capital - 76%. In Western Europe, the corresponding figures are 23.2 and 74%. In Russia - 10, 40 and 50%. At the same time, investments in human resources are growing, which makes the problem of their payback important.

‣‣‣ Logistics. This activity covers operations for the acquisition of raw materials, machinery and equipment. The main task at this stage is the uninterrupted supply of production with the necessary resources at minimal cost.

‣‣‣ production function. Production involves the transformation of raw materials, materials and semi-finished products into a finished product. Production management is associated with technical and technological aspects and is aimed at finding such a combination of factors of production that, with minimal production costs, would maximize profits.

‣‣‣ Marketing involving the definition of consumer needs. Marketing is a system of accounting for consumer preferences and impact on the consumer, designed to ensure the sale of products on the market. At this stage, the task of the entrepreneur is to identify consumer preferences, and often the formation of new ones.

‣‣‣ Research activities aimed at creating new technologies, updating the management system, developing and launching new products. In the age of the scientific and technological, and then the information revolution, scientific discoveries and their technological application play an increasingly important role and largely determine the position of an enterprise in the market, and, consequently, the amount of entrepreneurial income.

‣‣‣ Public relations, implying the management of relations between the company and public structures (public authorities, consumer societies, trade unions, the media).

37. Macroeconomics (from other Greek μακρός - long, big, οἶκος - house and Nόμος - law) - a science that studies the functioning of the economy as a whole, the economic system as a whole, the work of economic agents and markets; set of economic phenomena.

The science of macroeconomics deals with questions that cannot be answered at the microeconomic level: the problems studied by macroeconomics are common to the economy as a whole. Macroeconomic issues include:

§ Economic growth, economic cycles: What is economic growth? How to determine the rate of economic growth? What factors can influence economic growth? How does economic growth affect the development of the country in question?

§ Unemployment: Who are the unemployed? Is unemployment good or bad for the economy? How to deal with unemployment? How can you determine the different levels of unemployment in a country? What is the impact of unemployment?

§ General price level: What is meant by the general price level? How do changes in the price level affect the state of the economy? What is inflation? Which inflation is good and which is bad?

§ Money circulation, interest rate level: What is the role of money in macroeconomics? What affects the general interest rate and what does it affect in the economy?

§ The state budget: How does the state regulate its revenues and expenditures? How do such criteria as the well-being of society or the development of business in the country depend on changes in the state budget?

§ Trade balance: How does a country conduct international trade with other countries? How do changes in exports and imports affect the exchange rate, the development of the country in question, the state of the world economy?

Labor as a factor of production - concept and types. Classification and features of the category "Labor as a factor of production" 2017, 2018.

Labor as a factor of production is very important and relevant, since it means the participation of a person in the production process, the use of his own energy and potential. The main elements of labor include objects of labor, means and purposeful human activity. The main results of labor: economic benefits, human development (physiological and mental), human living conditions, accumulation of knowledge and experience.

Labor is not just an engine of progress, labor is the basis of human existence and life, because under its influence the brain, speech develops, experience is accumulated, skills are improved.

Labor as a factor of production has content and character. According to the content, low-skilled, medium-skilled and highly skilled labor is distinguished.

Labor has both quantitative and qualitative characteristics. Qualitative characteristics - this is the level of qualification of employees, quantitative - these are costs (number of employees, intensity of labor activity, working hours). The more time it takes to train and train a specialist, the more qualified he is.

In order to determine the nature of labor, it is necessary to conduct a thorough analysis of the combination of labor force and means of production, to clarify who and in what quantities appropriates the results of labor. With this in mind, three main social types of labor are distinguished: free, hired and forced. Forced labor is forced labor (slave labor). Currently, there are the first two types of labor activity.

Free labor is voluntary. This is labor activity for oneself, when the owner and worker act in one person. A typical example of such activity: entrepreneur, farmer, etc. If labor activity is hired, it means that the employer and employee are different people, their relationship is formalized by an employment contract, sometimes an agreement or contract, and based on the results of work, the employee receives a certain monetary reward.

For a long time there was a controversial question whether labor acts as a factor of production or is it a labor force. The physical, mental and intellectual abilities of a person are the labor force. If the employer is interested in the ability of a person to work, then the factor of production is the labor force. If the length of working time is important for him, then this factor is work. In order to work qualitatively, a person must have certain health, abilities and skills, hence it follows that the labor force exists before the start of the labor process.

Labor productivity is the ratio of the result of labor (the number of products produced) in a certain period of time. Labor productivity, in turn, depends on a number of factors that can affect it.

There are physical (material capital) and human capital. physical capital- non-expendable property (buildings, machines, equipment) used by the company in its activities. Distinguish between fixed and circulating physical capital. Main capital- real durable assets, the value of which is transferred to the product in installments over a number of periods of production (buildings, structures, machinery, equipment, vehicles, etc.). Working capital- real assets, the value of which is fully transferred to the cost of a new product and returned in cash to the entrepreneur when the product is sold in each cycle (raw materials, fuel, materials, semi-finished products). Human capital- the physical and mental abilities of a person obtained through education or practical experience; a measure of the ability to generate income embodied in a person. In other words, human capital is a special kind of labor resources. Therefore, capital in the market of factors of production means material factors, capital goods. Another aspect of capital is related to its monetary form. Money capital is the common denominator to which the value of capital in the form of any asset is reduced. In monetary terms, the value of both physical and human capital can be calculated. Capital embodied in the means of production is called real capital. money capital, or capital in cash, is an investment resource. By itself, money capital is not an economic resource; it cannot be used directly in production, but it can be used to purchase factors of production.

35. Entrepreneurship - a way of doing business on an independent basis.

The main functions of modern entrepreneurship are:

Financial and accounting management. Financial management involves the mobilization of capital, the accumulation of income from entrepreneurial activities, the management of the use of capital and income. The main task of entrepreneurship is to ensure the maximum return of entrepreneurial activity with minimal risk.

personnel function. Personnel management includes the selection of candidates and hiring, personnel management of the organization. Personnel management - a system of management activities in the field of social and labor relations of the organization's staff.

Competitive advantages of both the entire stratum and the individual enterprise today are largely determined by human resources. According to the calculations of the World bike, in the composition of the national wealth of the United States, the main production assets (buildings and structures, machinery and equipment) are only 1951, natural resources - 5%, human capital - 76%. In Western Europe, the corresponding figures are 23.2 and 74%. In Russia - 10, 40 and 50%. In addition, investments in human resources are growing, which makes the problem of their payback important.

Logistics. This activity covers operations for the acquisition of raw materials, machinery and equipment. The main task at this stage is the uninterrupted supply of production with the necessary resources at minimal cost.

production function. Production involves the transformation of raw materials, materials and semi-finished products into a finished product. Production management is associated with technical and technological aspects and is aimed at finding such a combination of factors of production that, with minimal production costs, would maximize profits.

Marketing involving the definition of consumer needs. Marketing is a system of accounting for consumer preferences and impact on the consumer, designed to ensure the sale of products on the market. At this stage, the task of the entrepreneur is to identify consumer preferences, and often the formation of new ones.

Research activities aimed at creating new technologies, updating the management system, developing and launching new products. In the age of the scientific and technological, and then the information revolution, scientific discoveries and their technological application play an increasingly important role and largely determine the position of an enterprise in the market, and, consequently, the amount of entrepreneurial income.

Public relations, implying the management of relations between the company and public structures (public authorities, consumer societies, trade unions, the media).

§ General price level: What is meant by the general price level? How do changes in the price level affect the state of the economy? What is inflation? Which inflation is good and which is bad?

§ Money circulation, interest rate level: What is the role of money in macroeconomics? What affects the general interest rate and what does it affect in the economy?

Labor as a factor of production is also a heterogeneous concept, in a complex meaning the cumulative efforts of people. Since there are a lot of professions and specialties, and each of them requires specific knowledge and skills, appropriate training is needed to obtain them. Training allows you to acquire this knowledge and improve existing skills. The population capable of working is called the labor force. For Russia, the labor force is made up of men (18-60 years old) and women (18-55 years old).

Labor as a factor of production is very important and relevant, since it means the participation of a person in the production process, the use of his own energy and potential. The main elements of labor include objects of labor, means and purposeful human activity. The main results of labor: economic benefits, human development (physiological and mental), human living conditions, accumulation of knowledge and experience.

Labor is not just an engine of progress, labor is the basis of human existence and life, because under its influence the brain, speech develops, experience is accumulated, skills are improved.

Labor as a factor of production has content and character. According to the content, low-skilled, medium-skilled and highly skilled labor is distinguished.

In order to determine the nature of labor, it is necessary to conduct a thorough analysis of the combination of labor force and means of production, to clarify who and in what quantities appropriates the results of labor. With this in mind, three main social types of labor are distinguished: free, hired and forced. Forced labor is forced labor (slave labor). Currently, there are the first two types of labor activity.

For a long time there was a controversial question whether labor acts as a factor of production or is it a labor force. The physical, mental and intellectual abilities of a person are the labor force. If the employer is interested in the ability of a person to work, then the factor of production is the labor force. If the length of working time is important for him, then this factor is work. In order to work qualitatively, a person must have certain health, abilities and skills, hence it follows that the labor force exists before the start of the labor process.

Labor acts as a process taking place between man and nature, in which man, through his own activity, mediates, regulates and controls the exchange of matter between himself and nature.

Labor is the disclosure by a person of his own potential of physical and spiritual energy, aimed at obtaining economic benefits (or income) necessary to meet needs.

The word "labor" comes from the Latin "tripalus". Ancient people used this word to designate a special device for immobilizing obstinate bulls or horses when they were going to be shod.

A little later, the Romans used the words "opus" and "labor" to denote labor. Opus - means creative work, labor - hard work intended only for slaves.

As the main elements of the labor process, objects of labor, means of labor and expedient human activity are distinguished. The latter means that human labor is carried out according to a pre-planned plan. The purpose of the activity, a specific set of tools are preliminarily determined. At the same time, a person consistently uses certain properties of the labor force is manifested through the content of labor. In addition to the content of labor, the nature of labor should be distinguished.

The nature of labor is revealed through the way in which labor power is included in the labor process or through the economic way of combining labor power and means of production (67).

According to the nature of labor, domestic labor, wage labor and forced labor (or forced labor) can be distinguished.

Domestic work is inherently free and voluntary. This is work for oneself, which manifests itself through a kind of self-service. In many cases, today, domestic work acts as an opportunity for a variety of life activities, has an educational character, when children take part in it, along with adults, as much as possible.

The free nature of labor is inherent in both the entrepreneur and the artisan, when both the worker and the owner of production act in one person.

For hired labor, it is characteristic that such relations are formalized in advance by an agreement, or contract. The one who is registered for work acts as a worker. One who employs others is called an employer.

The employee must be personally free. That is why he has a direct opportunity to sell his ability to work, negotiate with the employer about the amount of the upcoming remuneration (weekly, monthly) and the duration of the work itself. At the same time, the wage worker is forced to sell his ability to work and enter into labor relations of this kind, because he is deprived of other stable sources of subsistence. His personal freedom is complemented by his freedom from the means of production. Hence arises its economic dependence on the labor market, employer, etc.

A special kind of hired labor is in some cases the so-called lifelong employment, when the employee is guaranteed the provision of a job and a permanent source of subsistence, and other social benefits are determined.

As for forced labor, such a variety historically for a long time acted in the form of slave labor, forced labor of a dependent peasant, etc.

E. In modern conditions, forced labor exists in hidden forms. To a lesser extent, this applies to prisoners of war, the labor of prisoners, etc. Moreover, the labor of prisoners is not considered to be forced labor if such labor is normalized and takes place under appropriate conditions (the exception is forced labor of vagrants). Debt slavery, kidnapping of people and turning them into powerless slaves, as well as deception in hiring, various kinds of “publicly useful work”, which is typical for the administrative-command system, should be singled out as a special modern variety of forced labor.

Labor as an object of purchase and sale. For a long period of time in the economic literature, the question of what is the object of sale and purchase in the market of factors of production and what is the actual factor of production - labor or labor power was debatable.

The labor force acts as a set of physical, intellectual, mental and other abilities of a person that can be used in the labor process. A person forms all these abilities for work in advance, even before entering the labor process itself. Labor is revealed as a process between man and nature, in which man acts as an active participant.

What actually acts as a factor of production - the labor process or labor power as the ability to work?

The growing dominance of Western concepts in the domestic economic literature has led to the fact that labor, rather than labor force, is increasingly recognized as a factor of production.

If we assume that the employer (experiencing a demand for the labor factor of production) and the employee (offering his services in relation to a particular workplace) are primarily interested in the duration of working time, then with this approach, the object of sale and the factor of production is labor as a process.

If we assume that the object of interest on the part of entrepreneurs is the ability to work (physical, mental, spiritual), which the employee still has to demonstrate, then in this case, the factor of production is really the labor force. The amount of labor is determined in advance, taking into account the current legislation and the specifics of the work ahead.

Thus, the object of sale and purchase is precisely the labor force of a certain qualification. But the utility and object of economic interest for the employer (entrepreneur) is not the employee's track record and not his work biography (including copies of diplomas, etc.), but the real ability to get involved in a specific labor process, the ability to work a certain amount of time.

At the same time, the possibility of effective inclusion in the labor process depends not only on the real abilities of the workforce, the discipline of the employee himself, but also on the organization of the labor process at the enterprise.

It is no coincidence that when calculating the amount of labor available on a national scale, they usually proceed from the size of the entire population (and not from hours of work) and, taking into account age, determine the size of the working population. The total number of employed (i.e. officially employed) and those who are looking for work (unemployed) forms the economically active population. In a normally functioning national economic system, the number of the economically active population and the number of the working-age population should converge as closely as possible. The economically active part of the population can be temporarily increased by working pensioners, as well as by those who have temporary part-time jobs or a second job (“moonlight work”), and reduced by those who can work, but do not have and do not looking for a job (shadow business, marginalized groups of the population, household).

These and other factors influencing the processes of employment should be taken into account by experts when making appropriate calculations. In general, the volume of labor supply in the national economy depends not only on the size of the able-bodied population, but also on the willingness of workers to cede their labor force to the use of the employer. The state of health, living conditions, the dominant subjective assessments of the value of working and free time affect.

A direct impact on the supply of labor can be provided by various cash benefit programs (unemployment benefits, social benefits for families based on the number of children, etc.), which reduce the overall propensity to have a permanent job (the value of employment).

The volume of labor supply as a factor of production depends on the migration of the labor force (differences in wage levels between different countries affect), as well as on social and political stability, the army reduction program, the duration of study in secondary schools, the degree of accessibility of higher education for young people.

Thus, unlike land and capital, labor force (or labor) as a factor of production acts as an emerging factor - under the direct influence of socio-economic conditions.

In order to become a factor of production, labor must be drawn into production. This means that there must be a demand for it, which, other things being equal, depends on: 1)

the degree of utilization of existing production capacities, i.e. the availability of vacancies; 2)

the length of the working day, since the lengthening or shortening of the working day, respectively, reduces or increases such demand; 3)

the pace of development of production potential based on the implementation of new projects, etc.; the accepted technological model, i.e., in general, from the opening of new jobs.

The inclusion of labor in the production process may be subject to discrimination to varying degrees.

Total discrimination manifests itself when, under various pretexts, the national level of wages is reduced, labor service is introduced, and the attitude towards work itself turns into an indicator of loyalty to the existing social system or political regime, and finally, when they save by all means on creating normal working conditions.

Partial labor force discrimination can occur when:

a) equality of opportunities for certain groups of workers to find work is not ensured;

b) it is difficult to get a job for representatives of national minorities or to get a job on a national basis, artificially low wages are set;

c) obtaining a job is subject to a number of political, social and other conditions (“prohibitions on the profession”);

d) employers refuse to hire highly qualified workers;

e) women workers, when hired, have their wages reduced or are denied employment altogether.

In the future, the issues of formation of the volume of demand and supply of labor, outlined here, will, in the process of studying the course of fundamental economic theory, be the subject of special analysis.

In the meantime, let's make the main conclusion that the labor force (or labor) as a factor of production, in contrast to land and capital, acts as a factor of production, which is formed under the direct influence of existing socio-economic conditions.

In order to become a real factor of production, labor power must be drawn into production, supplemented by productive capital. As a result, capital as a movement presupposes the presence of a labor force, and the labor force itself, as a factor in modern production, presupposes the presence of capital as the material basis of one's own existence.

The functioning of the labor force as a factor of production proceeds not only in the form of an individual labor force, the carrier of which is a single person.

In the course of the combination of individual labor forces, the aggregate labor force is formed. The formation of the total labor force is a consequence of the division and specialization of labor, its combination.

Human capital. In labor as a factor of production, it is difficult to distinguish between the abilities given by nature itself and the skills formed as a result of education and vocational training. To emphasize the possibility of this artificial growth, the concept of "human capital" is widely used in modern economic concepts.

"Human capital" acts as a combination of a person's innate and acquired abilities to work, the state of health, his talents and business qualities, as well as the level of qualification and education that contribute to his identification and bring sustainable additional income.

Through the allocation of "human capital" (from about the 60s-70s of the XX century), the possibility of "supplying" by the household to the labor market is emphasized not just a living human organism capable of simple labor, but a labor force endowed with high intellectual abilities.

We already know that labor power is defined as the totality of physical, mental, intellectual, etc. abilities that a person can use in the labor process. But in order to possess such abilities, it is necessary to first form them in the process of upbringing and education.

The family begins to spend money on the maintenance of the child, i.e. to invest in "human capital" since its inception. Thus, according to some estimates, in the United States, raising one child and providing him with an education at the college level costs the family 500 thousand dollars.

The greater this investment in "human capital", the more likely it is to produce a more skilled workforce. It is easy to argue that the difference, for example, between highly skilled and low-skilled labor is based on different levels of investment in "human capital".

Thus, the formation of the labor force as a factor of production also includes the process of investing in "human capital". As an investment in "human capital" any action that improves the skills and abilities of a current or future employee is recognized.

The main areas of such investment are education, upbringing and health. An investor in "human capital" can be not only the family, but also the state, firms, various kinds of associations, and finally, the employee himself.

Receiving additional income from "human capital" (see Fig. 3.10) for the family is a kind of compensation for previously incurred costs. At the same time, the increase in monetary income from a certain moment makes it easier for the family to continue the process of forming “human capital” that has already begun. In addition to increased monetary income, as additional social benefits of a non-monetary nature, one should single out the expansion of one's horizons and circle of communication, as well as the acquisition of skills to perceive and reduce (generate) new ideas.

Rice. 3.10. Formation and implementation of "human capital" at the household level

A family at some point may be faced with a choice: either buy a new house and improve living conditions; or buy a plot of land and get rid of rent payments; or teach their children the necessary sciences, give them the opportunity to receive a diploma and a relevant specialty.

Outwardly, very different actions and very different economic consequences are found here in terms of the form and liquidity (possibility of return) of the invested funds. But the commonality of all these possible actions is that in any case people strive to get a "reserve" (capital): either material or "human".

Let us single out a special economic rule: over time, all such investments in “human capital” must be compensated (expenses for training, books, elementary monetary income lost during the period of study, etc.).

It makes sense to draw an equally useful conclusion for the future: those professions that require longer and more expensive training, which involve the formation of "human capital" and a more skilled workforce, should be paid higher.

The theory of "human capital" explains the validity of the differentiation of wage levels in the national economy, reveals some of the reasons for the presence of a higher level of unemployment among unskilled workers. It turns out that investments in "human capital" act as a special kind of social unemployment insurance. In addition, this theory emphasizes the special importance of the family in the reproduction of the labor force and the formation of a "fashion" for education as the highest need of a modern person.

Ultimately, the signs of education and the presence of “human capital” are not the cash costs incurred and paid tuition bills, but developed intellect and intelligence, professional knowledge and breadth of outlook, culture and discipline.

It must be remembered: in the presence of education, the lack of education is felt especially sharply in interpersonal relations.

FACTORS OF PRODUCTION AND THE THEORY OF MARGINAL PRODUCTIVITY

In order to start production, it is necessary to have at least someone who will produce and what will be produced from. Therefore, in a sense, we can talk about two factors of production - man and nature. However, such a definition would be too general. Usually in economic science there are four factors of production: labor, capital, land, entrepreneurship. Wherein under labor imply human activity aimed at achieving some useful result. Capital represents the entire accumulated stock of funds necessary for the production of material goods. Speaking of earth, we have in mind not only the earth as such, but also water, air and all other benefits that nature provides for the use of man. Entrepreneurship- a special factor by which the above three factors of production are combined.

In this chapter, we will first dwell in more detail on the consideration of factors of production as such, and then consider the problem of the interaction of these factors in the production process and the issues of their most optimal combination.

Labor as a factor of production

Labor is the purposeful activity of man, with the help of which he transforms nature and adapts it to satisfy his needs.

"Any work, - notes A. Marshall, - aims to produce some result." Although "some efforts a person makes for their own sake, as, for example, in games for their own pleasure." Such efforts are not considered as labor In economic theory, labor as a factor of production refers to any mental and physical efforts made by people in the course of economic activity.

The time during which a person works is called working day or working hours. The duration of working time is a changeable value, but it also has certain limits. Its maximum duration is determined by two factors: firstly, a person cannot work twenty-four hours a day, since he needs time to sleep, rest, eat, that is, to restore the ability to work. Secondly, the limit of working time is determined by the requirements of a moral and social nature, because a person needs not only physical recuperation, but also the satisfaction of some spiritual needs. The actual duration of working time is influenced by such factors as the intensity of labor, the movement of the phases of the industrial cycle, and the level of unemployment. The working hours of employees are determined by agreements between employers and trade unions.

Speaking about labor, it is necessary to dwell on such concepts as labor productivity and labor intensity. The intensity of labor characterizes the intensity of labor, which is determined by the degree of expenditure of physical and mental energy per unit of time. The intensity of labor increases with the acceleration of the conveyor, an increase in the number of simultaneously serviced equipment, and a decrease in the loss of working time. Under the conditions of scientific and technological revolution, the consumption of physical energy of the worker decreases, but the expenditure of mental and nervous energy increases, which is associated with complex automation and mechanization of production. A high level of labor intensity is equivalent to an increase in the working day. Labor productivity shows how much output is produced per unit of time. The progress of science and technology plays a decisive role in the growth of labor productivity. For example, the introduction of conveyors at the beginning of the 20th century led to a sharp increase in labor productivity. The conveyor organization of production was based on the principle of a fractional division of labor, in which the worker performs monotonous operations from one or two movements. However, at a certain stage it became clear that the division of labor operations is not unlimited, so in the fifties the conveyor was replaced by the use of machines with control devices. This again gave a sharp jump in labor productivity: for example, at Ford plants, the time from cylinder casting to final production was reduced by almost 96 times (from 24 hours to 14.6 minutes). Later, flexible production systems appeared.

The scientific and technological revolution has led to changes in the nature of work. Labor has become more skilled, the time spent on professional training of personnel has increased, physical labor is of less and less importance in the direct production process, it is becoming much more complicated, since a person has to deal with complex machines and mechanisms, the worker must understand the essence of the technological process, be able to handle expensive complex equipment, take the initiative.